The Knesset Finance Committee today approved a NIS 500 million expansion of export credit for ASHRA - Israel Export Insurance Corporation Ltd. The Ministry of Finance asked the committee's approval for the measure as part of the easements for exporters. Deputy Accountant General Eran Heimar believes that the supplemental credit guarantees will help exporters during a time of market uncertainty.
Heimar told the Finance Committee, "The guarantees are given for exports, and are not merely financial; they have political aspects. This is normal practice by most countries."
The supplement is in response to the erosion of export profitability, due to the shekel's appreciation, and instability in target markets. Exporters believe that the credit insurance supplement will reduce their insurance premiums for long-term export contracts.
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